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Texas: Tax Free Weekend

The state of Texas has enacted legislation that provides for tax-free weekends. The legislation is applicable to the sales transaction occurring during the following period when items are sold at a price that does not exceed $100. One of the primary reasons for enacting this legislation was to develop an opportunity to increase sales. This type of reduction in taxes allows retailers to offer lower prices on their products, which would in turn encourage consumers to make purchases.

When is Tax Free Weekend in Texas 2017

The next Tax Free Weekend in Texas will be on October 20, 2017.

What are examples of items that are exempt from taxes?

Some examples of items that are exempt from taxes during the tax-free weekend include clothing, footwear, school supplies and backpacks. Clothing and footwear must be priced at $100 or less to qualify for the exemption.

Clothing and footwear must be priced at $100 or less to qualify for the exemption. This includes items such as shirts, pants, dresses, hats, scarves, and belts. Shoes, boots, sandals, and other similar items are also included in this exemption.

It is also important to note that this exemption only applies to residents of Texas who make their purchases on the designated tax-free weekend. It does not apply to those who purchase outside of the state or those who make purchases before or after these designated periods.

Benefits from tax free weekend in Texas

Standard benefits:

  • Customers can purchase items for less.

  • Retailers are encouraged to offer lower prices on their products.

  • Businesses have a chance to increase sales.

  • Consumers have the opportunity to purchase items at lower prices.

Emotional benefits:

  • Get more bang for your buck. 

  • Shop for your favorite brands without worrying about how much you're spending.

Some things you shouldn't buy during Tax Free Weekend

While there are many items that can be purchased tax-free during Texas' Tax Free Weekend, there are also some items that you should avoid buying. One of those items is dishwasher detergent – you'll likely pay more for it during the tax-free weekend than you would at any other time. Toiletries are another item you should avoid buying during Tax Free Weekend, as they're often already discounted.

How do I know if my purchase qualifies for exemption during this time period 

You can't know for sure whether or not your purchase qualifies for exemption during this time period until you make the purchase. The best thing to do is to wait and see if your purchase was made on the tax-free weekend, then you will know that your purchase was exempt.

How does a store handle purchases made by customers who don't have their ID

If a customer does not have their ID with them at the register to prove they qualify for exemption, the store can still honor the purchase if it is within the $100 limit. The store might require the customer to provide additional documentation after the purchase has been made in order to prove that they are in fact exempt from paying taxes.

Some final thoughts

One of the primary reasons for enacting this legislation was to develop an opportunity to increase sales. This type of reduction in taxes allows retailers to offer lower prices on their products, which would in turn encourage consumers to make purchases. Given that many states are experiencing economic downturns and high unemployment rates, it's important for people who can afford them (and those looking for work) not only go out and take advantage of these tax-free weekends but also use them as opportunities to buy needed items they wouldn't otherwise be able to purchase with full price tags attached.


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